^0T-0ST-lW-206<^ 

From: Swanson, Brian (OST) 

Sent: Friday, July 16, 2010 4:22 PM 

To: 40-Mile Air, Leif Wilson; 40-Mile Air, Vanessa Thompson; Adams, Kevin, Work; Aero Twin, 

AACA, Tony Cestnik; Air Excursions, Marion Broughton ; Air Excursions, Mike Loverink; 

Alaska Air Carriers Association, Joy Journeay; Alaska Airlines, Joe Sprague; Alaska Airlines, 

Sandy Sinick; Alaska Central Express, John Seamon; Alaska Central Express, Mike Bergt; 

Alaska Central Express, Steve Endlich; Alaska DOT, Marc Luiken; Alaska DOT, Rebecca 

Cronkhite; Alaska DOT-Medicaid Passenger Fares; Alaska Seaplanes, Craig Loken; Alsek 

Air, Les and Debra Hartley; Arctic Circle, Donald Singsaas; Arctic Circle, Kelly Harris; Arctic 

Transportation Services (ATS), Wilfred Ryan; Arctic Transportation Services, (ATS), Jim 

Hjelm ; Bering Air, Alien Haddadi; Bering Air, Jim Rowe; Bob Stanford (lslairbk@Alaska.corti); 

Congressional, Begich, David Ramseur; Congressional, Begich, Megan Foster; 

Congressional, Begich, Tiffany Zulkosky; Congressional, Murkowski, Arne Fuglvog ; 

Congressional, Young, Jeremy Price; Consultant, Hank Myers; Consultant, Ken Acton; j 

Consultant, Norm Israelson; Copper Valley Air, Dave Parmenter; Copper Valley Air, Todd 

Hand ; Dorato Jets; Dorato Jets, Mark McKenna; ERA Aviation, Lori Goodman ; Era Aviation;, i 

Steve Wahrnke ; Frontier Flying, Bob Hajducovich; Frontier Flying, Paul Hendrickson ; Grant -

Aviation, Bruce McGlasson; Hageland, Mike Hageland; Hageland, Patrick Thurston ; Harris ;.'. 

Air, Fly Hackett; Harris Air, Scott; Harris Air, Scott Harris; Homeland Security, David Bernier;!^ 

Homeland Security, Ragan, William; Homer Air, Andy Smircich ; lliamna Air, Tim LaPorte ; 

Inland Aviation, Stephen Hill; Island Air, Jennifer Stanford; Katmai Air, Sonny Peterson; LAB 

Flying Service, Eric Bennett; Larrys Flying, Jean Chenaille; Michael Duffy 

(Michael.Duffy@dhs.gov); Myers, Larry (OST); Northern Air cargo, Dave Squier; Northern Air 

Cargo, Keven Schlosstein; OST, Dennis DeVany; OST, Renee Williams; Pacific Ainways, 

Steve Montanus; PenAir Consultant, Patrick Rizzi; PenAir, Danny Seybert; PenAir, Kim 

Kawaguchi; PenAir, Orin Seybert; PenAir, Robert Cohn; PenAir, Scott BlOomquist; ProMech, 

Mark Sessoms ; RITA, Benard Stankus; Salmon Air, Ron Salmon ; Seaport/Wings of Alaska, 

Nate Vallier; Seaport/Wings of Alaska, Rob McKinney; Servant Air, Wes Osowski; Skagway, 

Ben Lingle; Smokey Bay Air, Claire McCann; Spernak Airways, Mike Spernak; Steve Warnke 

(sw@flyera.com); Tanana Air Service, Brian Martin; Taquan Air Service, Brien Salazaar; 

Taquan, Beckie Allen; Tatonduk, Controller, Tina Paylor; Tatonduk, Marketing, Robert Ragar; 

Tatonduk, Owner, Robert Everts; USPS, Greg Garcia ; USPS, Leonard Kilburn; USPS, Mary 

Tobias; USPS, Steve Deaton; USPS, Tina Campbell; USPS, William Jones; Warbelows Air 

Ventures, Art Warbelow; Ward Air, Ed Kiesel; Ward Air, Tom Williams; Wings Airline 

Services, Bob Jacobsen ; Wings Airline Services, Holly Johnson; Wright Air Service, Bob 

Bursiel; Yute, Tim Vottis 

Cc: Devany, Dennis (OST) 

Subject: Soliciting comments on EAS proposals at Cape Yakataga and Icy Bay, Alaska 

Attachments: AlsekProposal07082010.pdf 

c3 

All: 

I would like to update you on the Essential Air Service (EAS) situation at Cape Yakataga 

and Icy Bay and give you an opportunity to submit comments if you wish. 

In anticipation of the end of Alsek Air Service's current contract on October 31, 2010, the 

Department issued Order 2010-6-15 on June 11,2010, to solicit proposals from all interested 

air carriers to provide EAS at Cape Yakataga and Icy Bay for a new, two-year term. In 

response to that order, the incumbent carrier was the only party to submit a proposal. 

We have directed the carrier to serve its proposal on you. A copy of the proposal is 

attached and may also be accessed online (at 

http://www.regulations.gov/search/Regs/home.html#searchResults?Ne=ll-f8+8053-i-8098-t-80 
74+8066+8084-i-l&Ntt=DOT-OST-1996-2009&Ntk=All&Ntx=mode+matchall&N=0)or 

through the Federal Docket Management System at: http://www.regulations.gov by doing a 

search on Docket Number DOT-OST-1996-2009. As a result, we will only briefly summarize 

the proposal below. 

Alsek Air Service submitted a proposal to continue to provide three round trips each week 

to Yakutat from May through October, and two round trips each week from November 

through April, with an intermediate stop at East Icy Bay, utilizing 4-seat or 5-seat Cessna 

aircraft, for an annual subsidy rate for both communities of $91,000, an increase of $13,000 

over the existing EAS contract. 

Please note that the fares shown are net of certain charges such as Federal transportation 

security fees, excise or ticket taxes, and Passenger Facility Charges. Of course, carriers have 

the discretion to charge fares they deem appropriate, and the passenger fares presented in their 

proposals have been developed for subsidy rate computation purposes only. Based on the cost 

elements incorporated in the carriers computation summaries, the carriers would have to 

realize passenger fares comparable to the averages shown in their proposals in order to 

achieve break-even or profitable operations without subsidy. You should also note that the 

carrier's schedule may change to reflect changing conditions (e.g., to better meet flights at the 

hub). The Department does expect subsidized air carriers to maintain well-timed and wellspaced flights in order to ensure full compensation. 

We request that you submit any comments you may have as soon as possible, but in 

any case no later than August 17, 2010. Please send your comments by fax to 202-366-7638 

or by email to both dermis .devany @ dot, gov and brian.s wanson @ dot, gov. Our rules require 

that you send your comments to both applicants as well. If you have any questions, or need 

more time to reply, please feel free to contact Brian Swanson of my staff at 202-366-5392. 

Sincerely, 

Dennis J. DeVany 

Chief, Essential Air Service Division, X-53 

Office of Aviation Analysis